The state’s economy has recovered from the economic shocks brought on by the pandemic, according to the Odisha Economic Survey Report 2022–23, which was presented to the Odisha Assembly on Thursday.
It stated that Odisha’s GDP is predicted to increase by 7.8% in real terms during 2022–2023 compared to 7% nationally and between 8 and 8.5 percent in real terms during 2023–2024. Yet, it attributed the growing inflation to the ongoing conflict between Russia and Ukraine.
“Odisha’s growth performance in 2022-23, despite unfavourable global conditions, is one of the highest. During the pre-covid period (2012-13 to 2019-20), the average growth rate of Odisha’s economy was 7.1 per cent. The decade of 2021-30 is expected to work in favour of India given its demographic structure, usage of technology, push for innovation, competitive and cooperative federalism, and stable government. Odisha has all the resources to benefit from a high-growth environment in the country and deliver prosperity for all. Assuming a normal monsoon, no further disruption to global supply chains and moderation in inflation, Odisha can grow in the range of 8 to 8.5 per cent in 2023-2024 in real terms,” the report states.
“The remarkable growth attained by Odisha needs to be juxtaposed with the dour and unsteady global macroeconomic scenario,” it reads. The World Bank projects that in 2022, the global economy expanded by 2.9%.
The Russia-Ukraine war, according to the analysis, caused a disruption in global supply chains, an increase in the price of energy and other commodities, and an increase in inflation in 2022–2023.
“In Odisha, the average inflation rate from December 2022 to December 2022 was 6.56 percent, up from 3.7% in 2021–2022.” The primary reason for such high inflation has been the high cost of fuel globally. Inflation in Odisha has historically been less than that of the entire country of India (6.81%) in 2022–2023. (April-December). A well-targeted and efficient public distribution system that prioritises food grains and the mid-day meal programme, as well as strong supply management techniques, have been crucial in containing prices in the state, according to the research.
“In Odisha, the average inflation rate from December 2022 to December 2022 was 6.56 percent, up from 3.7% in 2021–2022.” The primary reason for such high inflation has been the high cost of fuel globally. Inflation in Odisha has historically been less than that of the entire country of India (6.81%) in 2022–2023. (April-December). A well-targeted and efficient public distribution system that prioritises food grains and the mid-day meal programme, as well as strong supply management techniques, have been crucial in containing prices in the state, according to the research.
In comparison to the national per capita income of Rs. 1,70,620, it states that the state’s predicted per capita income for 2022–2023 is Rs. 1,50,677. It asserts that Odisha is developing quickly and closing the gap with some of the high-income states.
“Within seven years, the state has successfully reduced the gap between Odisha’s per capita income and per capita income at the national level from 31.6 per cent in 2015-16 to 12 per cent in 2022-23.
The CAGR (compound annual growth rate) of Odisha’s per capita income during 2011- 12 to 2022-23 was 10.9 per cent as against the 9.4 per cent CAGR of India’s per capita income,” says the report.
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